January 30, 2019 | Comcast Corporation | CMCSA

Cable and Beyond

Comcast Corporation (CMCSA), best known to consumers as a cable-TV provider, is in reality a well-diversified communications powerhouse with cable networks, broadcast TV—including NBC and Telemundo—plus films and theme parks.

It is moving strongly into the mobile market with cellular-service provider Xfinity Mobile and recently beat Fox in a bidding war to acquire Sky, the British version of Comcast’s media and entertainment divisions. The erosion of cable subscribers continues to worry some investors, but cable is not going away, and Comcast is broadening its reach through wireless and mobile services. Its businesses are mostly very high-margin and profitable, and it is putting new emphasis on theme parks—it just finished construction in Asia, a major growth area.

A tax anomaly led to unusually high earnings being reported for 2017, but operating earnings remain strong and growing. Comcast is in the midst of a $5 billion share-repurchase program, and its dividend of $0.84/share/yr., recently yielding 2.32%, appears secure. Revenue was $84.5 billion in 2017 and likely will be reported as $94 billion for 2018 and $109 billion this year.

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About Harry Berkowitz

Harry Berkowitz is personal finance editor of Bottom Line Personal, which puts him in charge of articles on topics ranging from investing and saving to credit cards, home buying, insurance and Social Security. He is also editor of the online "Stock of the Week", which highlights attractive stocks based on analysis by top investment experts. Harry's journalism experience covers four decades, including 20 years writing on financial matters at the daily newspaper Newsday as well as stints as the business editor at the Courier News in New Jersey and the Stamford Advocate in Connecticut. He is a graduate of New York University.

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January 30, 2019 | Comcast Corporation | CMCSA

This week’s Stock of the Week is much more diverse than you think.

Cable and Beyond

Comcast Corporation (CMCSA), best known to consumers as a cable-TV provider, is in reality a well-diversified communications powerhouse with cable networks, broadcast TV—including NBC and Telemundo—plus films and theme parks.

It is moving strongly into the mobile market with cellular-service provider Xfinity Mobile and recently beat Fox in a bidding war to acquire Sky, the British version of Comcast’s media and entertainment divisions. The erosion of cable subscribers continues to worry some investors, but cable is not going away, and Comcast is broadening its reach through wireless and mobile services. Its businesses are mostly very high-margin and profitable, and it is putting new emphasis on theme parks—it just finished construction in Asia, a major growth area.

A tax anomaly led to unusually high earnings being reported for 2017, but operating earnings remain strong and growing. Comcast is in the midst of a $5 billion share-repurchase program, and its dividend of $0.84/share/yr., recently yielding 2.32%, appears secure. Revenue was $84.5 billion in 2017 and likely will be reported as $94 billion for 2018 and $109 billion this year.